Principles of Taxation Law

Constitutional provisions as regards taxation

• Article 245
• Article 265 of the Constitution lays down that no tax shall be levied or collected except by the
authority of law.
• Article 246 read with Schedule VII divides subject matter of law made by legislature into three
categories-
- List I Union list (only Central Government has power of legislation on subject matters covered in
the list)
-List II State list (only State Government has power of legislation on subject matters covered in the
list)
- List III Concurrent list (both Central &State Government can pass legislation on subject matters).
Entries 82 to 92 C of List I enumerate the subjects where the Central Government has power to
levy taxes.
Entries 45 to 63 of List II enumerate the subjects where the Central Government has power to
levy taxes.
Parliament has a further power to make any law for any part of India not comprised in a State
even if such matter is included in the State List.
• Constitution(101st ) Act, 2016
• Article 246 A
• " (1) Notwithstanding anything contained in articles 246 and 254,
Parliament, and, subject to clause (2), the Legislature of every State,
have power to make laws with respect to goods and services tax
imposed by the Union or by such State.
• (2) Parliament has exclusive power to make laws with respect to
goods and services tax where the supply of goods, or of services, or
both takes place in the course of inter-State trade or commerce.
• 
• Direct and Indirect tax
• Tax and fee
• Tax and cess
• Income Tax Act, 1961
• Characteristics of Income Tax Act, 1961
• Basis and procedure of charging of Income Tax
• Income Tax Act 1961(amended up to date)
• Income Tax Rules 1962 (amended up to date)
• Finance Act
• CBDT, Circulars and notifications
• Judicial decision